diff --git a/runtime/pack/dist/opt/netrw/autoload/netrw.vim b/runtime/pack/dist/opt/netrw/autoload/netrw.vim
index cabcd0c925..c1f7b55c85 100644
--- a/runtime/pack/dist/opt/netrw/autoload/netrw.vim
+++ b/runtime/pack/dist/opt/netrw/autoload/netrw.vim
@@ -1,7 +1,7 @@
 " Creator:    Charles E Campbell
 " Previous Maintainer: Luca Saccarola <github.e41mv@aleeas.com>
 " Maintainer: This runtime file is looking for a new maintainer.
-" Last Change: 2026 Jul 23
+" Last Change: 2026 Aug 19
 " Copyright:  Copyright (C) 2016 Charles E. Campbell {{{1
 "             Permission is hereby granted to use and distribute this code,
 "             with or without modifications, provided that this copyright
diff --git a/test/old/testdir/test_plugin_netrw.vim b/test/old/testdir/test_plugin_netrw.vim
index b6a18ff418..0a5e594ad8 100644
--- a/test/old/testdir/test_plugin_netrw.vim
+++ b/test/old/testdir/test_plugin_netrw.vim
@@ -196,6 +196,11 @@ function Test_NetrwMarkFile_match_pattern_rebuild()
 
   bw
 endfunction
+
+" Test the "home" directory used for bookmarks and history
+function Test_NetrwHome() abort
+    return s:NetrwHome()
+endfunction
 " }}}
 END
 
@@ -921,4 +926,39 @@ func Test_netrw_open_no_dir_arg()
   bw!
 endfunc
 
+func Test_netrw_home_setting()
+  let save_home = get(g:, 'netrw_home', '')
+  let dir = fnamemodify('XnetrwHome', ':p:h')
+  if has('win32')
+    let dir = substitute(dir, '/', '\\', 'g')
+  endif
+ 
+  if has('nvim')
+    unlet! g:netrw_home
+    call assert_equal(netrw#fs#PathJoin(stdpath('state'), 'netrw'), Test_NetrwHome())
+  endif
+
+  let g:netrw_home = dir
+  call assert_equal(dir, Test_NetrwHome())
+  call assert_true(isdirectory(dir))
+
+  " the value is expanded
+  let $NETRW_TEST_HOME = dir
+  let g:netrw_home = '$NETRW_TEST_HOME'
+  call assert_equal(dir, Test_NetrwHome())
+
+  " without the setting $MYVIMDIR is used
+  unlet g:netrw_home
+  let $MYVIMDIR = dir
+  call assert_equal(dir, Test_NetrwHome())
+
+  call delete(dir, 'd')
+  let $NETRW_TEST_HOME = ''
+  if empty(save_home)
+    unlet! g:netrw_home
+  else
+    let g:netrw_home = save_home
+  endif
+endfunc
+
 " vim:ts=8 sts=2 sw=2 et